According to Investment News, well-known Hollywood broker Bambi Holzer is facing charges from the Financial Industry Regulatory Authority (FINRA). Ms. Holzer allegedly lied about the net worth of several clients when she sold private placements issued by Provident Royalties. According to the complaint, “In the course of obtaining supervisory approval of the Provident 8 transactions in March 2008, Ms. Holzer submitted to her firm net worth information for six of these customers, which Ms. Holzer knew or should have known to be false.”
The purported oil and gas company, Provident Royalties turned out to be a Ponzi scheme and was shut down by the Securities and Exchange Commission in 2009.
According to Investment News, this is not the first time Ms. Holzer has been party to a FINRA suite. Ms. Holzer has apparently settled 53 customer disputes over the course of her 30 year career in the securities industry. While it is not uncommon for a broker to be involved in a few customer disputes, however, Ms. Holzer record appears to be extensive.
The foregoing information, which is publicly available on the Investment News website, is being provided to you by The White Law Group.
The White Law Group is dedicated to helping investors recover their losses in disputes against their brokerage firm, and is all too familiar with suites involving Provident Royalties. The problem isn’t so much that these turned out to be bad investments. It is the way brokers go about selling such investments. Securities regulators have established suitability guidelines to help protect investors from significant losses.
Brokers have a fiduciary duty to make sure investments are suitable for an investor based on number of factors which include age, net worth, risk tolerance, and investment experience. In addition, many brokers over concentrated their portfolios with high risk private placements. It’s as simple as the saying, “don’t put all your eggs in one basket.” Brokers who fail to follow securities regulations and engage in less than savory sales tactics can be held liable for investment losses.
If you have suffered significant investment losses and would like to speak with a securities attorney about your litigation options, please call The White Law Group at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Boca Raton, Florida and Chicago, Illinois.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.